Operations: Policy & Strategy
It is very important for an organization to have well defined objective. A well-defined objective facilitates development of strategies and policythereby creating value for customers.
Operation Strategy - Essential to achieve operational goals set by organization in alignment with overall objective of the company. Designed to achieve business effectiveness or competitive advantage.
Operational strategy is planning process which aligns the following:
- Strategic Management Process for Production and Operation
For success of organizational strategic objective, strategic planning has to trickle down to various function areas of the business. In order to build strategy management, process a sequential process as below is followed:
Competition Analysis - In this step company evaluates and studies current competition in the market and practices that are followed in the industry for operations and production.
Goal Setting - Next step involves narrowing down the objective towards which the organization wants to move towards.
Strategy Formulation - The next step is breaking down of organizational goals into operations and production strategies.
Implementation - The final step is to convert operations and production strategies into day to day activities like production schedule, product design, quality management etc.
As organizations are always customer-centric, production and operation strategy for organization are built around them.